A “pay day loan” is a name for a loan that must be repaid very quickly, usually within weeks. This kind of loan goes by many names. These loans may be called “pay day” loans, “cash advance” loans, “check advance” loans, “deferred deposit” check loans, or “deferred payment” loans.
Here is how these short term loans work.
- The loan is paid back from your upcoming paycheck.
- You usually let the lender to take the loan amount out of your bank account when it is time to repay the loan. This is often 14 days after the loan.
- Under Louisiana law, the most you can borrow $350.
- The length of the loan is up to 30 days.
- Pay day loans will not help with long-term debts.
- Instead, pay day loans often turn an immediate problem into a n even more expensive long-term problem.